Monday, June 21, 2021

High-Frequency Trading

High-Frequency Trading is a method of trading that uses powerful computer programs to transact a large number of transaction orders in fractions of a second.

A complex algorithm is developed to analyze multiple markets and execute orders based on market conditions.

HFT companies have high turnover rates and a greater order-to-trade ratio (higher rate of executing transactions successfully).

High-Frequency Trading came into existence when the NYSE was looking for companies who could increase the liquidity of transactions and make the quotes more competitive.



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